Exercise 15-1 Non-strategic investments LO3 Prepare entries to record the following non-strategic investment transactions of Arrowhead Investment Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) June 2020 Mar. 1 Paid $64,980 to purchase a $64,000, two-year, 9.0% bond payable of Action Corporation dated March 1. Interest is paid quarterly beginning June 1. Management intends to actively trade bond purchases. Apr. 16 Bought 2,200 common shares of Brandon Motors at $27.50. May 2 Paid $42,968 to purchase a five-year, 6.50%, $44,000 bond payable of Collingwood Corporation. Interest is paid annually each April 30. 1 Received a cheque from Action Corporation regarding quarterly interest. Aug. 1 Brandon Motors' board of directors declared a dividend of $0.75 per share to shareholders of record on August 10, payable August 15. 15 Received the Brandon Motors dividend. Sept. 1 Received a cheque from Action Corporation regarding quarterly interest. 17 Purchased 25,400 Dauphin Inc. common shares at $3.60. Oct. 20 Sold the Brandon Motors shares at $31.40. Dec. 1 Received a cheque from Action Corporation regarding quarterly interest. 1 Sold the Action Corporation bond at 101. 31 Accrued interest on the Collingwood bond. The fair value of the equity security on this date was Dauphin, $3.90. The carrying value equalled the fair value for the Collingwood bond. 2021 Apr. 30 Received a cheque from Collingwood Corporation regarding annual interest. Journal entry worksheet ... Record the purchase of $64,000, 2-year, 9.0% bond payable to be held as an investment. Note: Enter debits before credits. General Journal Debit Credit Date Mar 01, 2020 Record entry Clear entry View general journal Analysis Component: If the fair value adjusting entry on December 31, 2020. were not recorded what would the effect be on the income statement and balance sheet? Income Statement Balance Sheet Based on your understanding of GAAP. would it be better or worse to omit an investment loss than investment income? O Better Worse